Categories of small businesses are determined by a business’s size, industry sector and revenue. Generally, small businesses can be classified into micro-, small-, or medium-sized enterprises. Micro-enterprises have fewer than five employees and annual revenues under $15 million; small businesses employ less than 100 people and generate up to $2 million in annual revenues; and medium-sized companies usually employ less than 200 people and generate up to $6 million in annual sales. Each category includes specific requirements that must be met for businesses to be considered as such. Furthermore, categorizing businesses based on size is often beneficial for government initiatives, policymaking and market research purposes.